7 August USDCHF Technical Analysis: Bulls trying to defend 200-hour SMA


The USDCHF pair advanced toward the parity mark on Monday but lost its momentum before testing that level and reversed its course on Tuesday. What next can traders expect? Gain insight into this 7 August USDCHF Technical Analysis.

7 August, OctaFX – The pair eroded a major part of overnight gains to two-week tops and dropped to test 200-hour SMA during the early North-American session.

As of writing, the pair was trading at its lowest level of the session at 0.9937, losing 0.35% on the day.

7 August USDCHF Technical Analysis

The pair eroded a major part of overnight gains to two-week tops and dropped to test 200-hour SMA during the early North-American session.

Technical indicators on the mentioned chart are holding firmly into bearish territory and thus, increase prospects for a follow-through selling.

 A convincing break below the 0.9925-20 region, nearing 50% Fibonacci retracement level of the 0.9867-0.9985 recent up-move and last Friday’s swing low, will reinforce the bearish outlook.

USDCHF 1-hourly chart

Spot Rate: 0.9943

Daily Low: 0.9931

Daily High: 0.9968

Trend: Bearish below 200-hour SMA

Resistance

R1: 0.9968 (current day swing high)

R2: 0.9994 (R1 daily pivot-point)

R3: 1.0025 (horizontal zone)

Support

S1: 0.9921 (last Friday’s swing low)

S2: 0.9900 (round figure mark)

S3: 0.9882 (S1 weekly pivot-point)

Disclaimer

This article about 7 August USDCHF Technical Analysis was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.

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